AXA IM cuts global equities to "neutral"

LONDON (Reuters) - AXA Investment Managers has cut its short-term recommendation on global equities to "neutral", arguing that investors should switch to cash given the slow pace of economic recovery in Europe and rising geopolitical risk.

AXA IM, which has 582 billion euros (464.23 billion pounds) in assets under management, said in a note dated Aug. 7 that it had also cut its recommendation on euro-area equities to "underweight".

"We are reducing global equities back to neutral and parking the proceeds in cash," AXA IM Chief Strategist Franz Wenzel wrote. "Europe is suffering from the events in Eastern Europe and a worrisome lack of momentum in France and Italy."

AXA IM in July had rated global equities "overweight" and had said it was "constructive" on euro-area equities.

(Reporting by Lionel Laurent; Additional reporting by BLaise Robinson; Editing by Sudip Kar-Gupta)